The Washington Business Journal is reporting that a joint venture between Castleton Holdings and ICG Properties is planning to open a “ultra high end” boutique hotel on 31st st. below M st.

According to WBJ, the actual hotel operator hasn’t been disclosed yet. The market has been traditionally dominated by local independents, but chains are making their way into the business. This has apparently fed the market’s growth despite the economic downturn. Reuters reported that:

It’s a trend pre-dating the global slowdown: big hotel chains are moving into the quirky boutique sector to tap into a niche of profitable growth…With rates nearer four-star than five-star, the newcomers’ hope is that novelty will replace glamour and ostentation for those who manage to defy corporate thrift and travel. The hope is that character will help carry their brands.

Whether an independent or a chain, the hotel will be located at 1050 31st St. in the space recently vacated by the American Association for Justice (nee American Trial Lawyers Association):